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The Kenya-Tanzania trade picks up in the wake of improved relations between the two countries after years of non-cordial relations. The skirmishes between the two countries resulted in retaliatory measures such as trade bans
The Kenya-Tanzania trade picks up in the wake of improved relations between the two countries after years of non-cordial relations. The skirmishes between the two countries resulted in retaliatory measures such as trade bans.
Kenya mainly imports cereals, wood, and edible vegetables from Tanzania and it exports pharmaceutical products, plastics, iron, and steel to the neighbouring State.
Former President Uhuru Kenyatta is credited for normalizing trade and diplomatic relations with Tanzania during his tenure, ending persistent strained trade ties. The two are the largest economies in the six-nation EAC bloc. The friction between the two had hindered the smooth flow of goods and services through the borders. In the meantime, Kenyan manufacturers had in recent years protested “discriminative” duties and non-tariff barriers such as double inspection of goods for standards by Tanzania. This had made supplies such as meat, milk, and related products to the neighbouring country uncompetitive.
Uganda is the single leading export destination of Kenyan goods, both in EAC and globally. It worked out to TSh1.94 trillion of goods last year, up from TSh1.83 trillion in 2021. This was an increase of TSh110 billion.
Kenya’s exports to Uganda last year were largely driven by increased shipments of palm oil. Kenya’s exports to Rwanda posted the fastest growth among EAC destinations last year with a 31.6 percent jump.
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Kenya’s exports to the Democratic Republic of Congo(DRC) however dropped from TSh490 billion in 2021 to TSh350 billion last year, partly due to decreased shipments of tea, cut flowers, and coffee. Kenya’s exports to Burundi grew to TSh8.3 billion in 2022 up from TSh150 billion the previous year.
